NHL forward Dany Heatley ends legal battle with Ottawa Senators

Terms of agreement strictly sealed

Dany Heatley in photos

Dany Heatley on physical day of Ottawa Senators training camp at Scotiabank Place hours before it was announced that he was traded to the San Jose Sharks on Saturday September 12,2009. (ERROL MCGIHON/SUNMEDIA)

Dany Heatley works on his stick following the Ottawa Senators practice at the Scotiabank Place in Ottawa on May 9, 2007. Ottawa Sun file photo

Team Canada's Dany Heatley celebrates his first period goal against Switzerland in Olympic men's hockey action at GM Place in Vancouver, B.C., on Thursday, Feb. 18, 2010. In the background are Switzerland's Yannick Weber and goalie Switzerland's Jonas Hiller. ANDRE FORGET/QMI AGENCY

ANDRE FORGET/QMI AGENCY

Ottawa Senators Dany Heatley celebrates his first period goal against the Carolina Hurricanes in NHL action at the Scotiabank Place in Ottawa on Feb 28, 2007. Ottawa Sun file photo.

Ottawa Senators Dany Heatley pumps his fist in the air as he celebrates Andrej Meszaros's (second from right) goal against the Washington Capitals during first period NHL action at the Scotiabank Place Tuesday Jan 16, 2007. Ottawa Sun file photo

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As the Ottawa Sun was first to report exclusively Tuesday, representatives for the former Senators' winger and owner Eugene Melnyk have come to a settlement over a $4 million bonus after he refused a deal to the Edmonton Oilers.

While the terms of the agreement have been strictly sealed by both sides, two league sources told the Sun that Melnyk and Heatley's camp -- led by agent J.P. Barry and the NHLPA -- were able to get the paperwork done in the last few days.

Though nobody would confirm the terms of the deal, it's believed Heatley will have to return a small portion of the bonus to the Senators. Neither Melnyk, the NHL or Barry were willing to comment when contacted by the Sun.

Heatley was on the ice with the Wild in Nashville Tuesday night and unavailable for comment until after the game.

Upset that he shelled out more than $14 million to Heatley in a span of 12 months, Melnyk, the Sun was first to report in November 2009, was trying to get his money back by filing a grievance from the bonus that was paid on July 1, 2009.

After requesting a trade in June, 2009 -- less than a year after signing a six-year extension -- GM Bryan Murray had a deal in place with the Oilers on July 1, 2009, but Heatley refused to waive his "no-move" clause to accept the trade.

The deal would have sent Heatley to Edmonton in exchange for Dustin Penner, Andrew Cogliano and Ladislav Smid.

Instead, Heatley and his camp told the Senators they wanted "more options" despite a visit to his Kelowna home from Oilers owner Daryl Katz, president Kevin Lowe and GM Steve Tambellini begging him to make the move to Edmonton.

When Heatley refused to move by the midnight deadline on July 1, Melnyk was forced to stroke a $4 million cheque to Heatley. He was dealt to the San Jose Sharks in September 2009 in exchange for Milan Michalek, Jonathan Cheechoo and a pick.

Heatley has since been dealt to the Minnesota Wild.

The decision by Melnyk to file a grievance was unprecedented in NHL circles. Though Heatley's camp was trying to get the case dismissed, Melnyk had been steadfast in his pursuit of trying to get some compensation for the payment.

Sources say Melnyk contended in the paperwork filed at the NHL's New York headquarters in the summer of 2009, that Heatley's camp gave the Senators permission to speak with the Oilers and the two-time, 50-goal scorer should have accepted the deal to Edmonton when it was made.

It's believed Melnyk not only claimed the decision by Heatley to kill the deal cost him $4 million, it also hurt the club's ability to sell season tickets because of the uncertainty in the Senators camp.

"I'm confident enough that when you think you're right, you fight," Melnyk told the Sun during the NHL all-star weekend festivities in Ottawa in January, 2012. "In this case, we're right and we fight."

Melnyk refused to drop the fight with Heatley, but nobody is sure what would have exchanged hands to get this settled after four long years of pursuing the case.

"I've never heard anything like it," said a league executive Tuesday. "It really would depend on how the language in the contract and the 'no move' clause to see what kind of exposure Heatley would have here.

"I really don't know how they would have settled it."

The good news for the Senators is they finally can put this chapter behind them.

NHL forward Dany Heatley ends legal battle with Ottawa Senators

Terms of agreement strictly sealed

The Dany Heatley saga has finally ended for the Senators, the Ottawa Sun has learned.

League sources told the Sun exclusively Tuesday the Senators have settled their grievance over a $4 milliion bonus with the former winger after he refused a deal to the Edmonton Oilers on July 1, 2009.

While the terms of the agreement between the two sides are strictly sealed, it’s believed representatives of owner Eugene Melnyk and Heatley’s agent J.P. Barry were able to close the book on this saga recently.